Sunday, March 30, 2014

Why Do Costs Rise?

We have come to expect rising costs as the reason suppliers are charging us more for just about everything we purchase.
But we should look into the reasons and not take them as gospel without analysis.
What actually causes costs to rise?
The first thing we are told is the age old ‘Supply and Demand’ mantra of all ‘for profit’ businesses.
The ‘market conditions’ reason is a valid one.  But it’s sadly one that can easily be manipulated and ultimately confuse most consumers.
In our current world the forces of ‘supply and demand’ have become less of a real reason and much more of an excuse as corporations gather more profit with less expenditure.
Increased worker productivity caused by the fear of being laid off has made corporations lean and mean and hungry for more.
And together with a historically high unemployment rate, at least in longevity has given the greedy CEO a vast worker pool from which to choose his next nervous slave.
And speaking of the money made as a result of that increased productivity just where did it go?
Certainly not into salaries or new hires as unemployment has not really seen lower numbers for a long time.
So the extra cash is being funneled back into the pockets of the job non-creators!

As for a perfect example of price increases due to greed let’s do a quick review about the price of oil and gas.
In January 2009 the average price for a gallon of regular gasoline was $1.60. Today it hovers and fluctuates in the upper $3.60 range and has been as high as $5 in some regions with oil as high as $7.50!
That would be all well and good if the industry raking in the big bucks for their environmentally polluting product was at least paying taxes on their windfall profit but they are not.
And not only do they get a pass from the IRS they receive funding from our tax dollars in the form of congressionally approved subsidies.
To do what with you might ask?
We are told they need it for research and development or R&D.
I think Rape and Destroy would fit better in that industry.
And why use tax payer dollars when you are the most profitable industry in the history of mankind?
What they are doing with our money is researching new and improved ways of blocking the implementation of clean alternative energy.  They see the alternatives as a major threat to their profit margin.
They are correct!
But as long as they continue to own Congress and fund lobbyists who wine, dine and basically bribe our so-called leaders the World will not soon get out from under the murderous thumb of big oil.
And I am not even talking about the prolific oil spill damage these uncaring corporations are wantonly causing through neglect and sweetheart lax regulations.
So the increased prices consumers must pay for fossil fuels are not caused by a struggling industry just trying to stay afloat in a sea of oil spills and red tape governmental regulations but rather the greed of a few mega-millionaires at the top who are unsatisfied with their meager take home pay.

You see after getting used to a certain level of affluence the human spirit will always want more.  It is in our nature to exceed our current standing and succeed at whatever we choose to do.
A corporation will want more profit year after year and there should be nothing wrong with that.
But the way in which they go about this search for more almighty dollars has become vulgar.
There are only a few ways to realize a higher profit margin.
A company may:
1 - Cut costs by laying off workers
2 – Or by lowering benefits (assuming there are any)
3 – Or by cheapening the product, even further than you have done already
4 – Or by increasing the selling price.
But reality soon sets in and most if not all businesses will implement all four of the above suggestions.
Success for today’s ultra conservative business people is a larger piece of every pie.  And they feel entitled to this ever since they saw the banks get bailed out for their anti-social behavior.

So in conclusion, why do costs rise?
Actually the answer is, why not?
Nyah Nyah
Keep voting Republican
Until and unless big business is forced to play by any rules there is no hope of this trend ending.
If forced to answer the question what would they admit is the reason they raise the price of everything you need?
It’s BWC baby, Because We Can and you can’t stop us!

This is greed plain and simple and the financial rape of the very people they consider to be their customers.

And the evil frustrating ever increasing wealth gap this causes is growing as we speak and threatens to take down America as we know it, or rather knew it.